Saudi Arabia, China to collaborate over crude oil market stability

LAGOS (CoinChapter.com) — The world’s largest crude oil exporter Saudi Arabia and the world’s top crude oil importer China have renewed their cooperation to ensure the global crude oil market is stable.

In detail, on Friday, Saudi Arabia’s Minister of Energy, Prince Abdulaziz bin Salman and China’s National Energy Administrator Zhang Jianhua agreed to work together to support the stability of the international oil market.

During the online meeting, the duo stressed the economic importance of a stable long-term crude supply to the global market. The ministers also revealed their willingness to collaborate on energy security among their nations.

It’s worth noting that the new agreement comes weeks after Saudi Arabia agreed to reduce crude oil production significantly. The middle eastern country had agreed with its fellow OPEC+ members to reduce the group’s crude oil production. Notably, due to the new agreement, OPEC+ will drop oil production by two million barrels per day as of November.

Following the OPEC+ alliance move to reduce oil production, Saudi left the official selling price for Asia of its flagship Arab Light grade unchanged for November loadings compared to October. Notably, the country is now on a charm offensive with its biggest Asian buyers, China and India, to ensure “market stability.”

Saudi Arabia Planning To Join BRICS

Meanwhile, amid the current debacle between the United States and Saudi Arabia over crude oil production, the middle-east country has expressed its desire to join BRICS (Brazil, Russia, India, China, and South Africa).

Crown Prince Mohammed bin Salman, Saudi Arabia’s prime minister, expressed the country’s desire to be part of BRICS. In a meeting with South African President Cyril Ramaphosa, Mohammed bin Salman announced his country’s readiness to shift engagement away from the US.

Saudi officials have made it clear that they would not take orders from the US. In addition, the CEO of Future Investment Initiative recently disclosed that US government officials would not be invited to their forthcoming event.

Saudi Arabia’s interest in joining BRICS comes as the country’s quarrel with the US over oil production intensifies. However, experts have described the move as a setback for Washington’s oil-for-security approach toward the Middle East.

Ramaphosa paid a state visit to Saudi Arabia last week. During this, the two countries signed agreements and memorandums of understanding worth about $15 billion, according to Reuters. South Africa is expected to hold the rotating BRICS presidency in 2023.

US Slams Saudi, OPEC+ For ‘short-sightedness.’

Meanwhile, the US has slammed Saudi Arabia and OPEC+ for its “short-sighted and misguided” decision to reduce the crude oil supply. Moreover, the Biden administration has threatened smattering consequences on Saudi accusing it of partnering with Russia to endure a reduction in oil production.

However, OPEC+ members have condemned the US statement and defended the group’s decision to reduce production. The members noted that technical analysis dictated their decision and had no political intentions whatsoever.

Furthermore, Turkey has accused the US of bullying Saudi Arabia. Turkey’s foreign minister Mevlüt Çavuşoğlu in an interview, condemned the US statement.

“We don’t think it’s right for the US to use it as an element of pressure on Saudi Arabia. Or any other country in this way.”

Çavuşoğlu said.

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